What lessons investors learned through economic or financial crisis:

1. Through LTCM crisis, investors learned about limits of arbitrage.

2. Through Covid 19 crisis, investors learned that lognormal assumption for many derivative contracts such as options may not be correct.

3. Through 2008/9 crisis, investors learned systematic default risk should also be included in rating agencies' models.

4. Through Covid 19 crisis, investors learned that ESG (Environmenal, Social, and Governance) concept of a firm should be valued higher.

5. Through LTCM crisis, the option investors learned to smirk (through the implied volatility curve).

1, 2, 3, 4

1,2,3

1,2

1, 2, 3, 4, 5